2 min read
The Nordic forest products sector has seen significant transformations in 2025, ranging from strategic corporate moves and evolving market dynamics to pressing regulatory and environmental issues. Here's a curated selection of five standout developments that professionals in the forest industry need to know.
1. Stora Enso's Major Divestment Reshapes Swedish Forestry Landscape
In a headline-making move, Stora Enso has sold approximately 175,000 hectares—12% of its Swedish forest holdings—for €900 million.
The buyer consortium, led by Swedish Soya Group and MEAG (Munich Re’s asset manager), signals a shift in asset strategy. Despite the sale, Stora Enso secured a 15-year renewable wood supply agreement, ensuring continuity in raw material sourcing for its operations in Sweden.
2. EU Deforestation Regulation Poses Major Compliance Costs
The EU Deforestation Regulation (EUDR), set for enforcement in late 2025, could cost Finnish businesses hundreds of millions of euros in implementation and compliance. A report by Pellervo Economic Research estimates initial setup costs at €207 million and annual costs at €65 million. The wood-based sector will bear the brunt, with steep fines for non-compliance raising the stakes for companies across the supply chain.
3. Market Volatility Spurs Strikes and Production Uncertainty
Labor unrest continues to ripple through the industry, particularly at UPM Plywood, where prolonged strikes have now spanned nearly two months and involve around 1,000 employees. The dispute centers on a company-specific collective agreement. Simultaneously, Metsä Fibre is preparing for possible temporary layoffs due to weakening global demand and growing inventories, driven by trade tensions between the US and China.
4. Softwood Sector Booms Amid High Roundwood Prices
Sawn softwood production in Finland surged by 25% in Q1 2025, driven by increased output of both spruce and pine. Despite the production boom, inventories are also climbing by an estimated increase of one-third. Combined with sluggish demand, this could indicate oversupply risks. At the same time, roundwood prices reached record highs in April, with pulpwood prices hitting their highest inflation-adjusted level in 30 years.
5. Conservation and Climate Commitments Intensify
Sustainability remains a focal point. Metsähallitus has launched its Climate Program 2025–2030, aiming to increase carbon stocks in state forests by 10% and cut greenhouse gas emissions by 20% by 2030. In parallel, Metsä Group is establishing a €10 million conservation foundation to protect biodiverse forest areas, expanding efforts beyond existing programs like METSO.
Stay Ahead with ResourceWise
The Nordic forest products sector is experiencing a period of significant transformation, characterized by structural changes, regulatory developments, and environmental priorities.
Staying on top of these changes is essential for professionals to remain informed and make strategic decisions. By subscribing to ResourceWise's forest products newsletter, you will receive insightful blogs directly in your inbox, ensuring you stay updated on market movements and industry news.
